AI boost! Tata Group announces partnership with OpenAI; TCS stock rises around 2%

After days of heavy selling in IT shares, Tata Consultancy Services offered investors a glimmer of relief on Thursday, with its shares trading in the green, rising almost 2%. The rise comes after Tata Group IT arm announced a strategic alliance with OpenAI to build artificial intelligence infrastructure in India and roll out joint market offerings.

The development was announced on the sidelines of the India AI Impact Summit in New Delhi. It comes a day after Infosys revealed entering a partnership with US-based Anthropic to provide enterprise AI solutions.




In earlier trade, TCS stock was up 1.97% to Rs 2,748 on the National Stock Exchange and Rs 2,747.85 on the BSE. At 1:05 pm, the share was up 0.23% or 6.30 points to 2,701.20 on NSE. On the Bombay Stock Exchange TCS inched 0.24% or 6.5 points to 2,701.

The rise came even as the broader market remained weak. The 30-share BSE Sensex was down over 700 points. At 1:05 pm, Sensex was down at 82,997.71, shedding 736 points or 0.88%.

The Tata Group said that the collaboration will allow thousands of its employees to use OpenAI’s enterprise ChatGPT tools to enhance productivity and innovation. TCS will also deploy OpenAI’s Codex to improve software engineering outcomes.

Under a multi-year pact, TCS’ HyperVault unit will create AI-ready infrastructure powered by green energy to support next-generation workloads. The company said the proposed facility will include purpose-built liquid-cooled data centres with high rack densities and connectivity across key cloud regions, a move intended to strengthen India’s position as a global AI hub.

"In the initial phase, TCS will develop AI infrastructure with 100MW capacity, with an option to scale to 1 GW. This infrastructure will power next-generation AI workloads and position India as a global AI hub," the Indian firm said in a statement.

Both companies also plan to jointly build industry-focused agentic AI solutions by combining OpenAI’s platforms with TCS’ contextual and domain expertise. As part of joint go-to-market efforts, the IT major said it will deploy, integrate and scale OpenAI’s AI offerings for enterprises in India and overseas, supporting organisation-wide AI transformation.

Tata Sons chairman N Chandrasekaran described the agreement as a deep collaboration and a significant step towards India’s ambition of becoming a global AI leader.

"This is a unique opportunity for OpenAI and TCS to transform industries. Together we will skill India's youth and empower them to succeed in the AI era," he said.

Commenting on the partnership, OpenAI chief executive Sam Altman said, "Through OpenAI for India and our partnership with the Tata Group, we're working together to build the infrastructure, skills, and local partnerships needed to build AI with India, for India, and in India, so that more people across the country can access and benefit from it".